Given that the
sun glass shack has annual sales of $730000 and it has $100000 of accounts
receivable.
We calculate it's days sales outstanding based on a 365 day year as follows:
Day’s sales outstanding = 365 days ÷ (Net sales/Accounts receivable)
[tex]=\frac{365}{\frac{730,000}{100,000}}= 50 \ days[/tex]
